How to appropriately price your products
Pricing too low means you won't have the margins required to run profitable paid ads. Pricing too high means your conversion rate could drop. A standard rule in ecommerce—especially dropshipping—is aiming for at least a 60% to 70% gross profit margin.
Margin vs Markup
Many sellers confuse margin and markup. A 100% markup means doubling your costs (e.g., $10 cost, $20 price), which equates to a 50% profit margin. The formula to find the exact price required for a specific margin is: Price = Cost / (1 - (Margin% / 100)).